Smith owns 85 percent of Smith Sisters Company, Inc. On March 8, 2013, she contributed land to the firm. Her adjusted basis in the land was $60,000 and its fair market value on March 8 was $140,000. Smith did not receive anything in return for the contribution. As a result of this transaction, Smith Sisters Company, Inc. will:
A. recognize a gain of $80,000 and will take a basis in the land of $80,000.
B. recognize a gain of $140,000 and will take a basis in the land of $140,000.
C. not recognize a gain and will take a basis in the land of $60,000.
D. not recognize a gain and will take a basis in the land of $140,000.